Denmark want to increase retirement age to 70 - 2025-05-24

Ah, Denmark, the land of hygge, pastries, and apparently, a looming retirement age of 70! Now, as much as I admire their commitment to a long, productive life, my financial spidey-sense starts tingling when I hear numbers like that. Because let's be real, while working longer might sound noble, it also sounds… exhausting. And more importantly, potentially unsustainable.

You've hit the nail squarely on the head with the "pay-as-you-go" system. It's like a financial chain letter, but instead of sending a dollar to ten people, you're sending your tax dollars to your grandparents. Which is lovely, in theory! But here's the kicker: Grandma and Grandpa are living longer, and fewer babies are being born. It’s a demographic double-whammy!

Imagine a game of musical chairs. When the music stops, there are fewer chairs (active workers) than there are people who need a seat (retirees). Someone's going to be left standing, and in this case, it's often the younger generation, who are paying a hefty chunk of their income into a system that might barely trickle back to them by the time they hit their "golden" years (which, at 70, might feel more like their "bronze" years!).

This is precisely why your frustration is so relatable. You bust your butt, pay your taxes, and then you're told you have to wait until you're practically a centenarian to see any return? It's enough to make you want to invest in a very, very comfortable rocking chair and a lifetime supply of Netflix.

Now, let's jet-set over to Singapore, the shining example you brought up. The Central Provident Fund (CPF) system isn't perfect – no system is – but it’s a brilliant blueprint for a sustainable future. It's like a personal retirement piggy bank, but supercharged. Each individual contributes to their own retirement, healthcare, and even housing. It’s a "defined-contribution" scheme, meaning you know what you put in, and that’s what you get out (plus some sweet, sweet interest!).

The beauty of the CPF is that the government isn't constantly wringing its hands over a shrinking tax base to pay for an expanding retiree population. Each person is largely responsible for their own financial future, which, while it might sound daunting, actually empowers individuals and ensures a more stable system in the long run. No more worrying about whether there will be enough "chairs" when the music stops!

You see, it's not about being heartless or abandoning those in retirement. It's about building a system that is robust and fair for everyone, now and in the future. We can't keep patching up old systems with sticky tape and crossed fingers. We need a fundamental shift.

So, here’s my plea to the governments of the world, from the fjords of Norway to the bustling streets of Tokyo: Take a long, hard look at Singapore. Learn from their innovative approach. It's not about an overnight revolution, but a slow, thoughtful transition. We need to empower individuals to save for their own futures, to build their own financial resilience, rather than relying solely on a tax-based system that's teetering on the edge of demographic collapse.

Because ultimately, we all want to enjoy our retirement years with dignity and financial security, whether that's at 60, 65, or yes, even (gulp!) 70. But let's make sure the system we have actually supports that dream, instead of turning it into a perpetual waiting game. What do you think? Are you ready to embrace a more self-funded future? Let me know in the comments below!